SmarTrend Weekly Performance Stats
Another strong week in the market last week and another week of an increasing number of Uptrends. Note the acceleration in the number of Uptrends several weeks ago foreshadowed the market's move to new highs for the year. As money flows into stocks, trends turn Upward. As trends turn up, money managers and investors chase that momentum leading stocks even higher. That is why we stress the importance of waiting for the trend turns, finding your entry point, and following the trend.
With so many stocks in our universe in an Uptrend, what is left to buy? Well, markets move in mini-cycles and there will be pullbacks to support levels along the way. But with 85% of our global portfolio now trading above their 200-day moving averages, stocks appear to be nearing a point of possible over extension. But so long as the general investment trend of the market is bullish (as described daily in our Morning Call), buying on pullbacks could be profitable. Look for recent Uptrends or older ones that have pulled back to support levels. As you can see below, the length of Uptrends is increasing but so is the average return. Don't fight the tape, just stay patient, disciplined and wait for your entry point.
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